Performance Appraisal as a Strategic Intervention

Abstract

An increasing number of organisations are instituting formal appraisal systems for employees at all levels. This article reviews major reasons for this widespread move and points out the failure of most performance appraisal systems to form an integral part of an organisation's forward stra tegic plan. While many organisations are adopting strategic plans designed to produce widespread organisational restructuring and the reformulation of organisational functions, the institution of PA systems in these same organisations can create reward structures which reinforce the status quo. PA should be a proactive intervention addressing future issues, supporting rather than subverting corporate strategy. To achieve a supportive link between strategy and PA, we suggest a series of questions to guide the plan ning of a PA sysiem so that it becomes a vital ingredient in moving the organ isation toward a future vision.